Proposed Overhaul of English Local Government: Five Potential Impacts

The deputy prime minister has unveiled proposals for the most significant restructuring of local governance in England in over five decades. Angela Rayner aims to introduce a directly elected mayor for every area and integrate existing district councils into broader authorities. Addressing an audience comprising regional mayors, local government officials, and business leaders, she characterized the plans as a “turning point when we finally see communities, people and places across England begin to take back control over the things that matter to them.” The question remains: how might these changes affect your local area? Local administration across England is frequently described as fragmented. Some regions operate with both district and county councils, each delivering specific services; others have a single council responsible for all functions, and some include a mayor overseeing these operations. Rayner’s initiative seeks to standardize this system nationwide. Consequently, services such as waste collection, libraries, urban planning, and leisure facilities would all be managed by one unified council. The government projects that consolidating councils could yield savings of £2bn. This projection emerges amidst a challenging financial landscape for councils throughout the country. Adjacent areas would subsequently be grouped under what is termed a strategic authority, led by a directly elected metro mayor. Recent instances of this include Nottinghamshire and Derbyshire, which now fall under the East Midlands Combined County Authority and elected their inaugural mayor, Labour’s Claire Ward, in May. Currently, half of England’s population resides in areas with an elected mayor, and studies indicate a high level of local recognition for these figures. Polling conducted by the non-partisan think tank the Centre for Cities reveals that mayors are the most identifiable local political personalities in their respective areas, with three-quarters of residents knowing who they are – significantly surpassing the recognition of MPs or council leaders. Mayors will be tasked with developing local growth strategies for their regions to stimulate economic activity. Their responsibilities will include collaborating with major employers, universities, colleges, and industry bodies within their areas to pinpoint sectors ripe for expansion. Local leaders will then be required to establish conditions conducive to growth, such as vocational college courses and Jobcentre assistance tailored to address local skills shortages. The aspiration is that these efforts will generate employment, with the government asserting that local leaders possess a deeper insight into their area’s strengths and aspirations than central government in Whitehall. “We must rewire England and end the hoarding in Whitehall by devolving power and money from central government to those with skin in the game,” Rayner stated. Mayoral devolution agreements typically also include a 30-year investment fund amounting to hundreds of millions of pounds. Additionally, some mayors are granted the authority to impose their own precept on council tax, although not all who possess this power choose to exercise it. Regions demonstrating robust financial management will qualify for what are known as integrated settlements. This arrangement means they will receive a single allocation of funds from Whitehall, with the discretion to distribute it as they deem appropriate, rather than being tied to specific budgets for particular purposes. Under the proposed plans, local mayors are slated to receive authority over their area’s transport systems. This could facilitate the creation of London-style networks, where bus services and light commuter trains are operated as components of a unified system. Some areas with existing mayoral structures are already implementing such initiatives. Greater Manchester has brought all bus services back under public control as part of its Bee Network, alongside its Metrolink tram system, with intentions to integrate commuter trains by 2028. Similarly, in West Yorkshire, Mayor Tracy Brabin is re-establishing control over bus services and has plans for the development of a mass tram system. Research conducted by the Centre for Cities indicates that transport policies have achieved the greatest impact among all initiatives introduced by mayors. Furthermore, mayors would gain increased authority over e-bike schemes under the proposals, including the power to issue fines to users and companies whose bicycles are left in an unsafe manner. Mayors would be assigned responsibilities for strategic planning, which entails formulating blueprints for housing construction and infrastructure development. Housing remains a top priority for the government, with a commitment to construct 1.5 million additional homes in England before the next election. While local authorities would not determine the number of houses they are required to build, having been assigned targets, they would have a voice in managing housing growth within their region. This includes assisting in identifying suitable building sites and making decisions regarding affordable housing. They would also be empowered to impose a levy on developers to help fund the necessary infrastructure to support increased housing, such as roads, major junctions, and reservoirs. Additionally, they would have input on freight and logistics matters. Mayors would also possess the ability to intervene in planning applications deemed strategically important to their area – mirroring the central government’s stated intention to intervene in applications of national strategic importance, such as those for prisons. Currently, local communities hold a right to bid for local community assets at risk of being lost. This encompasses a range of assets including sports facilities, historic buildings, pubs, libraries, and cafes, as well as local news outlets and youth clubs. The government has expressed its intention to replace this “right to bid” with a “right to buy,” accompanied by available funding for the acquisition of community assets. Local communities and businesses will also be granted powers to lease long-vacant shops, contributing to the revitalization of high streets.